1 BANK SHUTS DOWN on September 10, 2010, 119 Banks fail in 2010!!

On Friday, September 10, 2010, 1 BANK was CLOSED by U.S. regulators. The one failed institutions was located in Bradenton, Florida. This brings the total number of US Bank Failures to 119 so far in 2010, compared to 140 in 2009, 25 in 2008 and 3 in 2007. If bank failures continue at this pace, an estimate of over 165 banks will fail in 2010. The failed bank had total ASSETS of approximately $187.8 Million and total deposits of approximately $164.6 Million. The Federal Deposit Insurance Corporation (“FDIC”) estimates the cost of the bank closure to its Deposit Insurance Fund (“DIF”) will be approximately $58.9 million.

Horizon Bank – Bradenton, Florida, was closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Horizon Bank. As of June 30, 2010, Horizon Bank had approximately $187.8 million in total assets and $164.6 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Horizon Bank. In addition to assuming all of the deposits of the failed bank, Bank of the Ozarks agreed to purchase essentially all of the assets. The FDIC and Bank of the Ozarks entered into a loss-share transaction on $150.4 million of Horizon Bank’s assets. Bank of the Ozarks will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.9 million. Horizon Bank is the 119th FDIC-insured institution to fail in the nation this year, and the twenty-third in Florida. The last FDIC-insured institution closed in the state was Community National Bank at Bartow, Bartow, on August 20, 2010.

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 7,830 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

(Source: Federal Deposit Insurance Corporation.)

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